What is a credit score?
A credit score is a number, roughly between 300 and 800, that measures an individual’s credit worthiness. The most well-known type of credit score is the FICO® score. This score represents the answer from a mathematical formula that assigns numerical values to various pieces of information in your credit report.
Who uses credit scores?
The score is provided by scoring companies or credit bureaus and used by lenders to determine whether to lend you money, and what interest rate to charge you. In some instances, landlords, utility companies, and cell service providers may use credit scores too.
Credit Rating and Evaluation
A credit rating is a measure of creditworthiness based on an analysis of the consumer’s financial history, often computed as a numerical score, using the FICO or other scoring systems to analyze the consumer’s credit. A creditor’s evaluation of a person’s willingness and ability to pay debts as judged by character, capacity, and capital; a mathematical model used by lenders to predict the likelihood that bills will be paid as promised.